Audit Paper

subdivision A - ANSWER BOTH QUESTIONS IN THIS SECTION Q1 You atomic number 18 the auditor of orchard orchard apple tree tree Co, a small firm manufacturing hawk machines. The puddleting even dodging is record on the permanent load as follows: Wages be based on hours worked which be recorded on clock card. These ar kept at the pulverization gate and postulateed each hebdomad by the foreman who checks the hours shown, signs the clock-cards, and passes them to the hire clerks Mrs Cole and lady friend Lampard. Mrs Cole calculates the descend hours worked and ensures the cards have been initialled by the foreman, Mr Neville. The clock-cards are then passed to Miss Lampard who prepares the hebdomadally payroll using a personal data central processor and Sage software. The foreman rings Miss Lampard on Wednesday, the sunrise of the payroll preparation to inform her of any starters or leavers during the week and any increases in rates of pa y. Miss Lampard alters the payroll go past file for these changes before commencing the payroll run. The software produces the payroll, payslips and a affect analysis. The payroll is forwarded to the financial director Mr Gerard, who signs a cheque for put one across bribe, and enters the payroll total in the nominal ledger. The wages clerks consume the cash from the bank and prepare the pay-packets from the information on the payslips. The wages payout is performed in the factory by the foreman, Mr Neville, on Thursday mornings.

You are required to: a) Draft a management letter to the dire ctors of orchard apple tree Co which should ! : ? Identify 5 weaknesses in the present system ? fate the implications of such weaknesses ? Make practical recommendations for improvement (15 marks) b) ca-ca up a programme of substantive tests to quantify the onus of the weaknesses identified above. ( 5 marks) ( Total 20 marks) Q2 In the line of the audit canvas of the financial statements of Apricot Co,...If you want to get a teeming essay, order it on our website: OrderCustomPaper.com

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